Principal Financial Group has completed the acquisition of Punjab National Bank’s stake in Principal PNB Asset Management Company, thereby giving the U.S.-based financial services group the complete ownership of the mutual fund entity.
PNB had a little more than 21% stake in the fund house that had assets under management worth ₹7,827 crore as on July 31, as per data from Value Research. This assumes significance since PNB will no longer need to dilute its stake in UTI Mutual Fund in which it has an 18.24% stake.
This was also one of the issues raised by T Rowe Price in its petition filed at the Bombay High Court which, among other things, wanted the four government-owned promoters of UTI MF to dilute their stake in the country's oldest mutual fund entity.
State Bank of India (SBI), Bank of Baroda and Life Insurance Corporation are the other three state-owned promoters of UTI MF with each holding 18.24% in the AMC.
Meanwhile, pending regulatory approval, the acquired AMC will be known as Principal Asset Management Company, as per a statement by Principal Group.
The Iowa-headquartered Principal Group, which has $667 billion worth of AUM globally, has been present in India for nearly 20 years offering investment products and services to both, retail and institutional clients.
Published - August 29, 2018 10:23 pm IST
